Required informationThe Foundational 15 [LO4-1, LO4-2, LO4-3, L04-4, LO4-5][The following information applies to the questions displayed below.]Clopack Company manufactures one product that goes through one processing department called Mixing. All rawmaterials are introduced at the start of work in the Mixing Department. The company uses the weighted-average methodof process costing. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questionspertain to June):Work in Process-Mixing DepartmentCompleted and transferred to FinishedGoodsJune 1 balance28,000MaterialsDirect labor120,00079,50097,000OverheadJune 30 balanceThe June 1 work in process inventory consisted of 5,000 units with $16,000 in materials cost and $12,000 in conversioncost. The June 1 work in process inventory was 100% complete with respect to materials and 50% complete with respectto conversion. During June, 37,500 units were started into production. The June 30 work in process inventory consisted of8,000 units that were 100% complete with respect to materials and 40% complete with respect to conversion.Foundational 4-99. What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.) 11. What is the cost of ending work in process inventory for conversion?

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Asked Nov 9, 2019
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Required information
The Foundational 15 [LO4-1, LO4-2, LO4-3, L04-4, LO4-5]
[The following information applies to the questions displayed below.]
Clopack Company manufactures one product that goes through one processing department called Mixing. All raw
materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method
of process costing. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions
pertain to June):
Work in Process-Mixing Department
Completed and transferred to Finished
Goods
June 1 balance
28,000
Materials
Direct labor
120,000
79,500
97,000
Overhead
June 30 balance
The June 1 work in process inventory consisted of 5,000 units with $16,000 in materials cost and $12,000 in conversion
cost. The June 1 work in process inventory was 100% complete with respect to materials and 50% complete with respect
to conversion. During June, 37,500 units were started into production. The June 30 work in process inventory consisted of
8,000 units that were 100% complete with respect to materials and 40% complete with respect to conversion.
Foundational 4-9
9. What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)
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Required information The Foundational 15 [LO4-1, LO4-2, LO4-3, L04-4, LO4-5] [The following information applies to the questions displayed below.] Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method of process costing. Its Work in Process T-account for the Mixing Department for June follows (all forthcoming questions pertain to June): Work in Process-Mixing Department Completed and transferred to Finished Goods June 1 balance 28,000 Materials Direct labor 120,000 79,500 97,000 Overhead June 30 balance The June 1 work in process inventory consisted of 5,000 units with $16,000 in materials cost and $12,000 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 50% complete with respect to conversion. During June, 37,500 units were started into production. The June 30 work in process inventory consisted of 8,000 units that were 100% complete with respect to materials and 40% complete with respect to conversion. Foundational 4-9 9. What is the cost per equivalent unit for conversion? (Round your answer to 2 decimal places.)

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11. What is the cost of ending work in process inventory for conversion?
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11. What is the cost of ending work in process inventory for conversion?

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Expert Answer

Step 1

1. The Finished goods transferred out has been commputed by adding opening WIP and units added to production and subtracting closing WIP.

The equivalent units have been computed by multiplying the percentage completed with number of units in both FG and WIP inv...

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Computation of finished units transferred out Opening 5000 Add :Added to Production 37500 Less. WIP closing inventory (8,000) Finished Goods transferred out 34500 Equivalent unit % Completed Materials Conversion Cost Materials Conversion Cost Units 100% 100% 100% 40% 34500 34500 34500 FG Closing WIP Total Equivalent Units (FG+Closing WIP) Cost Incurred Opening Balance Added to Production Total cost during the month 8000 8000 3200 37700 42500 16000 120,000 136000 12000 176500 188500 Cost per Equivalent Unit 3.20 5.00 So, Cost of conversion per Equivalent unit is $5.00

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